While still months out from drilling its first ever well in The Bahamas, Bahamas Petroleum Company (BPC) announced yesterday in a press statement that it won a bid to drill for oil off the coast of Uruguay, where there exists the potential for a billion barrels.
According to the company’s statement, the AREA OFF-1 petroleum license in Uruguay is part of BPC’s plan to secure and expand its portfolio of projects to ensure future growth, as its local licenses move “beyond the exploration phase and the company itself moves into the next phase of its life”.
After postponing the planned drilling of an exploratory well in the second quarter of 2020 due to the country’s lockdown as a result of COVID-19, BPC reset its drilling period to late 2020 or early 2021.
The company announced at the end of last month that it secured a drill rig contract with Stena Drilling for its test well in the southern Bahamas.
Chief Executive Officer of BPC Simon Potter said in the statement that the climate in the global oil industry allowed for a small company like BPC to attain the Uruguay contract, whereas months ago the company might have been beaten out by larger oil companies.
“The current period of introspection in our industry is presenting nimble, forward-thinking companies such as ourselves with compelling opportunities to expand our portfolio and achieve countercyclical growth,” Potter said.
“The recently-closed open licensing round in Uruguay presented exactly such an opportunity for us where, for very low cost, we have been able to secure an exploration license of an extremely high caliber that, even as recently as a few months ago, we most likely would have been outbid on by much larger players.
“The scale of the opportunity that our planned drilling campaign in The Bahamas may unlock for us, at the end of 2020, means that our personnel are and will remain entirely focused on their efforts to deliver the Perseverance #1 exploration well successfully.”
Potter said BPC will use its ten years of experience in The Bahamas to fully unlock the potential of its new Uruguay contract.
The company noted in its statement that it continues to seek a farm-in relationship with a large multinational oil company, explaining that such a deal would be transformative for the company and take The Bahamas’ oil exploration “forward once the initial exploration well is completed”.